If you believe it’s time to sell, you’re in a pretty lofty club — Jeff Gundlach, Bill Gross and Carl Icahn are all members, just to name three. Many investors, in fact, have taken up the bearish cause, yanking money from U.S.-focused stocks and shifting it overseas.
But not only was the S&P 500 up 6.7 percent year- to date heading into Monday trading, but it has staged a 19 percent rally off the February closing low.
Here are the big-name bearish forecasts so far:
• Stan Druckenmiller (May 4 at the Ira Sohn Conference): “Get out of the stock market.”
• George Soros (June 9, as reported in The Wall Street Journal): “The billionaire hedge fund founder and philanthropist recently directed a series of big, bearish investments, according to people close to the matter.”
• Carl Icahn (June 9, on CNBC): “I don’t think you can have (near) zero interest rates for much longer without having these bubbles explode on you,” while also saying it’s difficult to assess when exactly that might occur.
• Bill Gross (in his monthly investment letter): “I don’t like bonds. I don’t like most stocks. I don’t like private equity.”
• Jeff Gundlach (Aug 01): “The artist Christopher Wool has a word painting, ‘Sell the house, sell the car, sell the kids.’ That’s exactly how I feel sell everything. Nothing here looks good.”
They may end up being right… only time will tell.